In the United States, commercial finance is the function of offering

loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that ...

s to businesses. Commercial financing is generally offered by a bank or other commercial lender. Most commercial banks offer commercial financing, and the loans are either secured by business

asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can ...

s or alternatively can be unsecured, where the lender relies on the cash flows of the business to repay the facility. Assets used to collateralize commercial finance loans include: * Real estate * Receivables from invoices * Equipment or supplies While qualifying for financing is generally easier for large, well-established companies, some small businesses can qualify for commercial financing from the

Small Business Administration The United States Small Business Administration (SBA) is an independent agency of the United States government that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and stre ...

(SBA). The SBA may provide either financing or insure a lender who takes a risk on a smaller company to provide commercial finance. Businesses can also seek the assistance of Commercial finance advisors in the structuring and sourcing of commercial finance. These are known as Independent Financial Advisers or Commercial Finance Brokers.

References

Corporate finance Loans {{finance-stub

See also

References